Rupee closes at record low level against Dollar
On Wednesday, September 21, the Indian rupee closed at its lowest level against the US dollar. The US Federal Reserve saw a strong dollar index due to fears of a sharp increase in interest rates to control inflation. On September 21, the rupee closed at 79.9750 against the dollar. It had closed at 79.75 in the previous trading session. The rupee opened at 79.79 against the dollar on Wednesday and saw a steady decline during the day’s trading.
The dollar index reached a two-decade high of 110.87. However, it is very unlikely that the US Federal Reserve will increase interest rates by 100 basis points to control inflation. The Federal Reserve is expected to increase interest rates by 75 basis points. This will be the third time in a row such a huge increase.
In addition to the decision on interest rates, investors will be watching Fed Chair Jerome Powell’s press conference and policymakers’ forecasts of interest rate hikes. DBS Group Research has said in a note that changes in global risk perceptions, the Federal Reserve’s decision on interest rates and rising real yields in the US will be taken into consideration.
Global crude oil benchmark Brent crude futures fell 2.36 per cent to $92.76 per barrel. Meanwhile, the BSE Sensex ended 262.96 points lower at 59,456.78. Compared to the Asian markets, the Indian market saw relatively less decline. According to stock exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital market. They bought shares worth Rs 1,196.19 crore on Tuesday. While DII were the buyers on Wednesday.
